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Coddan CPM Ltd. – Company Registration Agent in the UK
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Main and Common Uses of Dormant Companies

Main and common uses of dormant companies: how to use a non-trading company?

Uses Dormant Company

Main and common uses of dormant companies: a dormant company is a limited company which has not completed any financial transactions over a given time period. It is very useful for protecting private company name or owning property leases. Here at Coddan, we have many years of experience at registering of dormant companies in England, Scotland, Wales and Northern Ireland. The whole incorporation process is carried out very efficiently, either over the phone or face to face.

There are a many uses of a dormant company but here are the most common: -

Company names can be reserved ready for future use, using a dormant company. If the private company has never traded, it's a good way to protect a company name from being used by competitors while all the preparations to get the business up and running are made. Using a limited dormant company to own a property freehold or a head lease to a property is common amongst companies who deal with flat management.

In this case, it's usual for a residents association to be set up to manage the expenses and any legal issues. Investment holding companies often use private dormant companies for the same reason, to protect assets or intellectual property.

Some private companies are dormant at the initial incorporation stage, simply because their use is to hold a name, until the business begins in earnest. Some limited companies become dormant after a period of trading. There is no time limit on how long a company limited by shares can remain dormant and a company will lose its dormant status as soon as it begins to trade, either for the first time, or as a recommencement.

If you're not sure why use a dormant company, here are some good reasons: -

If you're using a dormant company to protect a business name, it's a great, legal way to ensure that nobody else can use it. A private company name that contains an important and competitive keyword is often a precious commodity. Everybody else within the same industry will be seeking to use the same company name, because its use will guarantee huge and targeted website traffic. With the right name, a company can greatly reduce the amount it spends on marketing.

In such a competitive marketplace, it's important that you reserve your ideal company name as soon as possible. We make the registration of a dormant company very easy, whether you're doing it to own a name, lease, asset or intellectual property. Using our services will remove all opportunities to get the paperwork wrong and incur penalties.

Let us make your dormant company creation easy and trouble-free. We can provide you with a registered office address service, if you need one, and we will file your annual return for Companies House for you. Please give us a call.